G20 Must Regain Momentum in
G20 finance ministers and central bank governors are gathering in
The Australians recognize that this is a critical moment for the world economy and have energized the G20 meeting agenda by narrowing its scope and focusing on these core issues.
The most immediate issue for the G20 is the choppy conditions in emerging markets in the wake of the US Federal Reserve's "tapering" of quantitative easing. Recent volatility in these markets seems to reflect increased investor concerns about macro-economic imbalances, dependence on external financing, and other political and policy uncertainties in several emerging market countries.
Our own analysis shows that the equity selloff in January (a 7 percent fall) closely tracked that of the May to
First, they should encourage the U.S. Federal Reserve to continue its prudent management and effective communication of its exit strategy in the months ahead.
Second, the G20 should encourage emerging market economies to take measures to reduce macroeconomic imbalances and to step up implementation of the broad range of structural reforms needed to overcome infrastructural bottlenecks and expand productive capacity.
Beyond these immediate concerns, the G20 must focus on enhancing the role of the private sector in financing infrastructure investment, which would boost economic growth and job creation.
Investment needs are projected to increase from
To drive greater investment in infrastructure, we believe the G20 should create the legal and regulatory environment to foster the development of new capital market instruments for infrastructure projects. More marketable financing instruments would increase both the pool of investable and attractive long-term assets, and in turn the supply of private financing from insurance companies, pension funds and other long-term investors.
These efforts to stimulate growth and investment cannot be achieved without a safe and vibrant financial system.
Five years ago, the G20 laid out a series of reforms in the wake of the global financial crisis. The system is now much safer than it was before the crisis thanks to progress made in implementing the global reform agenda and the industry's own actions.
Most Popular Stories
- Crimean Referendum Violates International Law: Obama
- Social Media Can Help a Company's Credit Line
- Fuentes Makes NAHREP's Top 10 List
- Alfredo Ramos Martínez, Mexican Muralist, Symposium at Scripps
- Juanes Back to Singing About Love
- Hispanic Unemployment Eased in February
- Darrell Issa Apologizes to Elijah Cummings
- Florida Insurers Reach Out to Hispanics
- 2 Million Long-term Jobless Have No Benefits
- Boeing Freezes Nonunion Workers' Pensions